Marketing occurs when people decide to satisfy needs and wants through exchange.
Exchange, Transactions and Relationships
Marketing occurs when people decide
to satisfy needs and wants through exchange. Exchange is the act of obtaining a
desired object from someone by offering something in return. Thought it is only
one of the many ways people can obtain a desired object, it allows a society to
produce much more than it would with any alternative system. For an exchange to
take place, several conditions must be satisfied. Of course, at least two
parties must participate, and each must have something of value to the other.
Each party also must want to deal with the other party and each must be free to
accept or reject the other’s offer. Finally, each party must be able to
communicate and deliver. These conditions simply make exchange possible.
Whether the exchange actually takes place depends on the parties’ coming to an
agreement. If they agree, we must conclude that the act of exchange has left
both of them better off or at least not worse off. After all, each was free to reject or accept
the offer. In this sense, exchange creates value just as production creates
value. It gives customers more consumption possibilities.
A transaction is marketing’s unit
of measurement. It consists of a trade of values between two parties. A
monetary transaction involves trading goods and services in return for money whereas
a barter transaction involves trading goods and services for other goods and
services. Transaction marketing is part of the larger idea of relationship
marketing. Marketing is shifting from trying to maximize the profit on each
individual transaction to maximizing mutually beneficial relationships with
consumers and other parties. This is based on the assumption that if good
relationships are built, profitable transactions will simply follow.
Tags : MARKETING MANAGEMENT - Marketing Concepts
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